“the agri-food and agro-industry sectors in argentina”

“The Agri-Food and Agro-Industry sectors in Argentina”

MULTI-SECTORIAL INVESTMENT MISSION

GERMANY – ARGENTINA

Hamburg, June 6, 2011

Federal Country.

Has 23 provincial states and a

federal District City

Has borders with Chile, Bolivia,

Paraguay, Brazil and Uruguay.

Argentina in the World

Fuente: MAGyP en base a datos de INDEC

Total Area 2,8 million km2

Agricultural Area 360.000 km2

Population 40,5 million

GDP U$S 370.000 million

Investment / GDP 22%

GDP Annual Growth 2003/2009 over 8%

Exports U$S 68.500 million

Imports U$S 56.443 million

Numbers of Argentina

Agriculture and Agro-Industry

in Argentina

Composition of Agriculture and Agro-

Industry Production

6

22,1%

22,6%

Exports evolution

Primary & Agri-manufactured products

Exports evolution

Primary & Agri-Manufactured Products

The Agri-food and Agro-Industry Sector is one of the most

important and dynamic in the national economy.

It has been growing strongly based on the available

resources, the incorporation of technology, specialized

workers and a competitive cost-price relation.

Argentina has grown to become a major world food

producer thanks to:

Favourable climatic conditions

Highly productive land

Off-season production for the most important world markets

Possibility of expanding the agricultural area

Unit for Rural

Unit for Rural

Change

Change

-

-

UCAR

UCAR

Public Policies for Agri-food and

Agro-Industry

In 2009 the Ministry of Agriculture, Livestock and Fishery was

created.

It has an active participation in the opening of new markets.

It incorporates investment possibilities in the bilateral agenda.

It strengthens the institutional capacity and strategic

coordination of the policies with foreign funding, creating the

“Unit for Rural Change” (“Unidad para el Cambio Rural” – UCAR).

Is the most important instrument of public investment of the

Ministry of Agriculture.

Works with 22 of the 23 provinces of Argentina.

Its investment portfolio includes 101 projects, 47 already

implemented and 54 currently being implemented.

It is mainly funded through international financial institutions and

through funding from the National and Provincial States.

Provincial program of agricultural services -

PROSAP

Source Mill. de U$S Implementation

World Bank 4150 – AR 105 100%

World Bank 7425 – AR 37 100%

World Bank 7597– AR 300 10%

Resources World Bank 442

Interamerican Development Bank 899/OC –

AR 3

125 100%

Interamerican Development Bank 899/OC –

AR 1 y 2

200 75%

CCLIP - 600 12%

Interamerican Development Bank 1956/OC-

AR

(1era etapa)

Sources Interamerican Development

Bank

925

Public sources 273

Total sources 1640

FUNDING

Agricultural Area

Wet Region (25%)

Semi-Arid Region(15%)

Arid Region(60%)

75% of the Area is composed of fragile

systems, subject to erosion processes.

SOILS OF ARGENTINA

SOILS OF ARGENTINA

Santa Cruz

Rural roads – U$S 78 million

Irrigation & Drainage - U$S 446 million

Rural electrification – U$S 169 million

To consolidate the equal territorial

reconstruction and development process,

PROSAP has invested U$S 693 million, through

three of its “intervention activities”:

www.prosap.gov.ar

Infrastructural projects

ACHIEVEMENTS

Productive crop conversion in zones that were benefited

with irrigation projects (140.000 has).

The efficiency of water conduction and distribution

increased from 70% to 90% in the implemented projects.

Improvement of rural roads permitted “passable days” per

year to increase from 246 to 325.

Rural electrification projects gave more than 6.000 families

access to electricity, which improves productive processes

as well as their quality of life.

Public and private investment

Public Investment also attracts a considerable flow of Private

Investment, generating a multiplier effect, which increases the

social return on the investment

Intervention Activities

Nº of

Projects

Public

Investment

Private

Investment

Total

Investment

U$S

Irrigation & Drainage

35 446.464.969 412.121.510 858.586.479

Rural Roads

10 168.469.455 29.729.904 198.199.359

Rural Electrification

8 78.229.821 33.527.066 111.756.887

Total

53 693.164.245 475.378.480 1.168.542.725

Projects in the province of Entre Rios

U$S

Projects Beneficiaries

Public

investment

Private

investment

Total

investments

Citricola irrigation area 74 7.444.625 1.488.925 8.933.550

Pipeline production areas 932 4.652.406 930.481 5.582.887

Rice zone rural

electrification

179 12.212.279 2.442.456 14.654.735

Total 72.435.369 43.362.709 29.171.172

Citricola irrigation area,

province of Entre Rios

Geographic area of impact

Department of Federation. The 1,678 hectares area covered by the project is

implanted with citrus

Objectives

Increase yields per citrus hectare

Improve fruit quality for export

Beneficiaries

72 producers with farms implanted with orange and mandarin varieties mainly.

Business area

Increase primary production

Packing plants and industrialization of citrus

Pipeline production areas,



North Paraná and Diamond Departments.

Objectives

Contribute to saving energy costs of agro-industrial and residential users

Reduce pollution that comes as a byproduct of the production process through

the use of diesel and fuel

Lower the cost of fuel used by families.

Beneficiaries

12 industries and 920 residential and commercial users

Business area

Poultry

Dairy Industry

Agroindustrial

Rice zone rural electrification,



• Villaguay, Concordia, Colón and Federal departments

Objective

• Expand services provision of electric power networks

• Improving competitiveness

• Reducing the vulnerability of the rice sector

Beneficiaries

179 irrigation users

Business area

• Rice processing and industrialization

Projects in the province of San Juan

U$S

Project Beneficiaries

Public

investment

Private

investment

Total

investments

Irrigation development area in the San

Juan river

976

24.872.691 19.898.152 44.770.843

Competitive development of seed sector 420

3.688.485 2.956.494 6.644.979

Total

28.561.176 22.854.646 51.415.822

Irrigation Development Area in the

San Juan River, province of San juan

Geographic area of tmpact

• Sarmiento, Rivadavia, Rawson y Pocito departaments .

Objetives

• Increase the area under irrigation

• Incorporate technology to optimize on-farm irrigation

• Optimize investments in fixed assets to increase competitiveness and

incomes of producers.

Beneficiarios

• 976 irrigation farmers

Business area

• Procesamiento e industrialización de hortalizas y frutas

Competitive Development of Seed Sector,

Province of San Juan


• Rawson, Pocito, 25 de Mayo, Jáchal, Iglesias and Calingasta departments.

Objectives

• Contribute to the competitive development of the seed sector

• Strengthening seed supply chain

• Provide producers with the skills to apply appropriate technologies for

production and management

Beneficiaries

• 420 producers

Business area

• Production, packaging and export of seeds

NOA

Sugar cane, Tobacco,

Legumes, Forestry, Wine,

citrus, Vegetables, Olives,

aromatic herbs, Spices, Fine

fruits, avocado.

Five Regions

Main Productions

NOA





fruits, avocado.

CUYO

Wine, Fruits,

Vegetables, Olives,

Preserves, Aromatic

herbs, Spices, Dried

Fruits.

Five Regions

Main Productions

NOA





fruits, avocado.

NEA

Cotton, Rice, Fruits,

Vegetables, Yerba mate,

Forestry, Livestock, Tea,

Aromatic herbs, Spices.

CUYO

Wine, Fruits,

Vegetables, Olives,

Preserves, Aromatic


Fruits.

Five Regions

Main Productions

NOA





fruits, avocado.

NEA





CENTRO-PAMPEANA

Cereals, Oilseeds, Oil industry

Livestock, Honey, Fishery, Dairy

products, Milling, Vegetables,

Fruits, Citrus, Candies, Preserves,

Sausages, Aromatic herbs,

Spices.

CUYO

Wine, Fruits,

Vegetables, Olives,

Preserves, Aromatic


Fruits.

Five Regions

Main Productions

NOA





fruits, avocado.

NEA





CENTRO-PAMPEANA

Cereals, Oilseeds, Oil industry

Livestock, Honey, Fishery, Dairy

products, Milling, Vegetables,

Fruits, Citrus, Candies, Preserves,

Sausages, Aromatic herbs,

Spices.

PATAGONIA

Livestock (sheep), Wool, Fishery,

Fine fruits, Forestry, Candies,

Chocolates, Aromatic herbs,

Sausages and Smokeds.

CUYO

Wine, Fruits,

Vegetables, Olives,

Preserves, Aromatic


Fruits.

Five Regions

Main Productions

www.prosap.gov.ar

Development of the irrigated agricultural area of San Isidro de Lules

Development of the irrigated agricultural

area of San Isidro de Lules

Development of the irrigated agricultural area of San Isidro de Lules

FINAL REMARKS

FINAL REMARKS

The coordinated action of public programs on the territory

has created a friendly environment for private investment

developments.

PROSAP coordinates programs and projects that support

investment in the sector in the areas of:

Agricultural risk

Incentives for business in agri-chains

Clusters development

Food quality

Food export promotion

FINAL REMARKS

FINAL REMARKS

Joint ventures with foreign clients make excellent business

opportunities

Through 47 projects already implemented and 54 currently

being implemented, new business opportunities can be

analyzed and carried out

There are also 42 projects on advanced preparation that

allow to think about new opportunities

www.prosap.gov.ar

Thank you very much.

www.minagri.gob.ar

www.prosap.gov.ar

[email protected]

[email protected]

To learn more about how investing in Argentine

agribusiness can benefit you, please contact us

“the agri-food and agro-industry sectors in argentina”

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